Here is a fantastic piece of copywriting misdirection from the Logging policies for Chrome Instant:
Because your default search engine requests results as you’re typing in the address bar, it may be logging your text as search terms. The specifics of the logging behavior depend on your default search engine. For example, if you use Bing as your default search engine, the text you type in the address bar is sent to Bing (just as it is when you search on www.bing.com), and Bing's logging policies will apply.
At Google, we keep search logs to improve our services, strengthen security, and help prevent fraud and abuse.
Lucky you're not using that evil Bing search engine then, isn't it? Of course, if you don't actually want your searching to be logged, sold, and etched into your Google DNA database table then you should probably mosey-on-over to DuckDuckGo...